Recent Growth Company Investor recommendation Nationwide Accident Repair Services is motoring along nicely, successfully pursuing organic and acquisitive growth in a consolidating car crash repair market.

Steered by CEO Michael Wilmshurst, Nationwide is the country’s biggest dedicated provider of crash repair and accident administration services to motor insurers and fleet operators via a network that spans England, Scotland and Wales. Interim results to June were strong, showing pre-tax profits up 14% to £3.9m on turnover up 16% to £88m, from which the board increased the dividend 13% to 1.7p.

The improved results reflected new contract wins and extensions from the likes of Zenith, AXA and Norwich Union, while this was also a good period of trading for the Network Services Division (which provides accident management services to insurers and fleet operators).

Wilmshurst says he is also looking to grow retail sales – tyres, exhausts etc – from group bodyshops. ‘In the current cycle that we’re in,’ he explains, ‘we think the retail side will be attractive. This is because, rather than buy a new car during downturn, people tend to do up their old ones’.

Closing the half with a healthy £4.6m of net cash and consolidating a fragmented yet defensive sector – cars crash in foul or fair economic weather – Nationwide is forecast to grow full-year profits and earnings per share to £8.78m and 14.1p respectively. Trading on a prospective multiple of less than ten times, shares in this growing, dividend-paying company remain very good value.

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